There is a palpable excitement in Vietnam at the prospect of heightened protectionist measures from the US against China (as well as Mexico and Canada). The country had been perceived as a beneficiary of the 2018-2019  trade tensions and many expect that new protectionist measures against China could lead Vietnam to enhance its role as a manufacturing hub. However, the question remains: Is the path ahead as simple as it seems?

As Vietnam's pioneering family businesses face the crucial transition of leadership and ownership, this report provides strategies to ensure their continued growth and resilience. The transition of leadership and ownership in Vietnamese family businesses is a critical juncture. By taking deliberate steps to structure their companies effectively, these businesses can build on the pioneering success of the first generation and lay a strong foundation for future growth. Embracing structured transitions will position these family businesses to thrive in a competitive and dynamic global marketplace. Join us in securing the future and legacy of Vietnam's family enterprises in a dynamic global market!

In the first half of 2024, Vietnam's M&A landscape has surged with deals totaling $3.5 billion, marking an 80% increase year-to-date, and 21% increase compared to the first half of 2023. Key transactions include Warburge Pincus’ investment in the Xuyen A General Hospital System, KKR's stake in Medical Saigon Group, and Coteccons Construction's strategic acquisitions. Bamboo Capital Group entered waste-to-power with Tâm Sinh Nghĩa, while Masan High-Tech Materials acquired H.C. Starck Holding for $134.5 million. FPT Corporation's buyout of Japan's Next Advanced Communications underscores Vietnam's tech ambitions.

Vietnam's economic boom owes much to the strength of its export sector. However, as sustainability and protectionism grow worldwide and especially in key export markets for Vietnam, this could pose a new challenge for Vietnam. The rapid economic growth of our country has unfortunately also resulted in significant environmental problems, which include substantial greenhouse gas emissions and air pollution, and this could ultimately end up blocking Vietnam in its tracks by reducing its ability to export. For example, Europe’s carbon border adjustment mechanism (CBAM) will rapidly make several Vietnamese products uncompetitive - even some where the country is currently very cost-efficient - due to the emissions they generate. Therefore, Vietnamese companies are forced to rapidly re-evaluate their practices - not just to appear green but also to project their ability to grow, in line with the global goals of sustainable development.

Vietnam, amidst a transformative shift in the global semiconductor value chain, faces a golden opportunity to ascend and play a more substantial role. Despite challenges in limited investment and talent shortages, the country's semiconductor industry is poised for exponential growth, particularly in the automotive and AI sectors. With government support and private stakeholders' strategic contributions, Vietnam can shape its semiconductor success, align with emerging trends, and make a lasting impact on the global value chain.

In the urgent global fight against climate change, carbon markets emerge as a pivotal solution, incentivizing greenhouse gas reduction and mobilizing private capital. Vietnam, aspiring to achieve a net-zero economy by 2050, can harness the untapped potential of voluntary carbon markets and forest-based projects to propel sustainable development and actively engage in the dynamic carbon market landscape.

Despite achieving a 90% national insurance coverage and reducing maternal and infant mortality rates, Vietnam's universal healthcare system faces challenges in affordability, accessibility, and sustainability. The nation, grappling with an aging population and a rise in chronic diseases, presents a unique opportunity for private sector involvement, signaling potential transformative change and offering avenues for substantial growth and impact in building a more sustainable healthcare system for the future.